The answer doesn’t explain where the 1,050 for net periodic pension cost comes from. Can someone show me what is in the calculation? Nevermind, I saw the 1050 at the top of the page. This is solved.
Ok, new question about this one. Question 8 is a company reporting in accordance to IFRS. It asks for the net periodic benefit cost recorded in the income statement. The answer is $1,050 (which is the net periodic benefit cost) because IFRS does not require the components of pension cost to be reported as a net amount. Question 21, is a company reporting in accordance to GAAP. It asks for the net periodic benefit cost recorded in the income statement and the answer is the net periodic benefit cost (just like question 8) and the answer explanation is the exact same thing as question 8. What is going on with this? Am I missing something?
Crap, nevermind again. They both follow IFRS. Jesus, I’m having a big brain poop today. What the hell.